The bill mandates the Washington State Office of the Insurance Commissioner to conduct a study on insurance coverage options for projects that develop permanently affordable homeownership units. The study aims to explore various insurance approaches to mitigate costs associated with condominium construction defect liability while ensuring adequate access to insurance. It will involve consultations with nonprofit organizations, government entities, insurers, and representatives from the residential construction industry. The insurance commissioner is required to collect relevant data and findings from past studies and may engage consultants to assist in the analysis. A report detailing the findings, including an actuarial analysis and recommendations for reducing insurance costs, must be submitted to the legislature by December 31, 2026.

Additionally, the bill stipulates that if specific funding for the study is not allocated by June 30, 2025, it will become null and void. The definition of "permanently affordable homeownership" is also provided, outlining the criteria that such units must meet, including sponsorship by nonprofit organizations or government entities and the imposition of resale restrictions to maintain affordability for future low and moderate-income buyers. The provisions of this act will expire on December 31, 2027.